Carrol Daily Times Herald from Carroll, Iowa on November 18, 1970 · Page 6
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Carrol Daily Times Herald from Carroll, Iowa · Page 6

Carroll, Iowa
Issue Date:
Wednesday, November 18, 1970
Page 6
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Referral Sales Scheme Most Prevalent Type of Fraud— Iowa Consumers Bilked of $264,487 in 'Con Games 9 So Far This Year By Gary Rucforman (Drake University £ournAll«m Student) (Distributed by Iowa Dally PreM Association) DE5S MOINES — Since January of 1970, Iowa consumers have been bilked of $264,487 by what an Iowa assistant attorney general calls "con games." These con games are just some of the cases of consumer fraud that come to the office of Julian Garrett, head of the Consumer Protection Division of the Iowa Department of Justice. During September, Garrett's office received 143 c»m- plaints of consumer fraud from Iowa consumers, and closed 208 cases either through court a c t i o n or be- cause there was insufficient evidence to prosecute. Since January, the division has received 1,276 complaints, and has closed 1,099 of them. He said the most prevalent type of fraud in Iowa is the referral sales scheme. For example, a construction company approaches a farmer and says it Monsanto Outlets Are Acquired by F.S. F.S. Services, Inc., a farm supply firm affiliated with the Illinois Agricultural Association, announced Tuesday the purchase of 52 farm supply outlets in the Midwest from Monsanto Chemical Corp. of St. Louis, Mo. The entire retail network of Monsanto in Iowa, Illinois, Nebraska and Wisconsin is involved in the purchase. This includes a former Monsanto Agricultural Center (MAC Plant) at Rockwell City. The Rockwell City MAC Plant will be known as Cal-Car F.S. and operate along with the present Cal-Car F.S. plant and district office in Rockwell City. Other Monsanto plants in this area which are in the process of being transferred to Cal-Car F.S. are at Grand Junction and Mooreland. Cal-Car F.S. currently has outlets at Westside, Roselle and Jefferson. A company spokesman said F.S. Services is in the process of reselling the outlets to county farm service organizations which are members of state agriculture organizations, such as Cal-Car. The outlets will sell the entire F.S. line which includes most farm supplies with the exception of heavy equipment and tractors. Center Certified as Extended Care Facility in Medicare Carroll Health Center, 2241 North West St., which provides care ranging from a retirement section to those requiring 24- hour professional nursing care, has been notified by the U.S. Department of Health, Education & Welfare that it is certified as an extended care facility to participate in the Medicare program. Five representatives from Social Security visited the nursing home Tuesday to finalize ments. The State of Iowa has 495 licensed nursing homes, of which 48 are certified as extended care facilities. Two of these are located in Carroll County, the COMPLETES COURSE Army Pvt. Albert W. Whiteing Jr., 18, whose parents live in Vail, has completed a nine-week unit and organization supply specialist course at the U.S. Army Quartermaster School, Ft. Lee, Va. Pvt. Whiteing entered the Army in June, 1970 and completed basic training at Ft. Lewis, Wash. processng arrange- Carroll Thomas Rapids. Health Center Rest Haven in and Coon Omaha Family in Ray Kock Home (Ti.mes Herald News Service) WESTSIDE - Mr. and Mrs. Howard Bell and Rodger oi Omaha were weekend guests oi Mr. and Mrs. Raymond Kock and family. Mr. and Mrs. Earl Wieber visited Mr. and Mrs. Richard Coil and sons in Omaha Tuesday. Coffee guests Sunday morning of Mr. and Mrs. Otto Massman included Mr. and Mrs Lonny Bartels and family from Des Moines. Dinner guests Sunday of Mr and Mrs. Dean Bornhoft am family in Sioux City includec Mr. and Mrs. Don Bornhoft Galen and Joel, and Mr. an Mrs. Leroy Wiebers. Mrs. Hoft Home from North Dakota (Times Herald New* Service) WALL LAKE - Mrs. Cliff loft was accompanied home Thursday by Mr. James McCormick and Mrs. of Devils L,ake, N.D., after spending some ime in their home. Mrs. Christine H e r r 1 g returned home last Monday evening after a visit in the Maj. Warren Herrig home at Bossier City, La. She arrived in Des VIoines on Saturday and spent the weekend in the Glen Boes home at Norwalk. They accompanied her to her home Monday evening. Edna Z a d o w accompanied Mrs. Dorothy Oxendale and Bruce and Mr. and Mrs. J. H. Hanson to Eagle Grove Sunday where they were dinner guests in the home of Rev. and Mrs. 0. E. Weiss. Saturday dinner guests in the Henry Stickrod home included Mr. and Mrs. Arvid Sundquist and Mr. and Mrs. Arthur Sundquist of Sioux City. has selected his farm to show the company's aluminum siding. It will agree to put siding on his house and pay him, in many cases $100, for each sale that is made lo another customer who buys the highly-priced siding as a result of having looked at the original customer's home. The company tells the first customer that these referral sales will "pay all or a substantial part of the price of the siding job." Douglas R. Carlson, an assistant attorney general with the Consumer Protection Division, said the fraud comes in when the salesman goes to the next house and offers the same deal. Eventually, Carlson said, everyone is getting the siding at a high price but getting no repayments for referrals. The Consumer Protection Division this year has recovered $45,000 for 15 persons in Marion County who were victims of the siding sales fraud. "Iowa consumers must realize," Garrett said, "that they are at a tremendous disadvantage . . . stacking up against high-pressure sales pitches and the offers of something for nothing." Where does the fraud start? As examples, Garrett said, salesmen may come to your Times Herald, Carroll, la. Wednesday, Nov. 18, 1970 FUNNY BUSINESS By ROGER BOLLEM THE CAN n-1* door "trying to get, points for a scholarship, or a trip to Europe." "They'll tell you that they are taking a survey, getting an opinion, or offering an advertising special — but never trying to sell you a n y t h i n g," Garrett said. One such "advertising Special" is the door-to-door sales of encyclopedias. The salesman will offer his customer a set of encyclopedias because his home has been chosen as a model home for the encyclopedias, in return for a letter to be used in advertising. The customer must keep the set up to date by purchasing a yearbook and subscribing to the reference service for the next 10 years. The State of Iowa is currently prosecuting an encyclopedia company for alleged violations of the Iowa Consumer Fraud Act because the company claims that it is offering to place these encyclopedias on the basis of the customer's qualifi- cation. In fad, there are no requirements the customer has to meet, Carlson said. A signed contract follow* the sale* pitch, which may in some eases bind the consumer. Several states have enacted legislation to give the consumer a period of time, for example three days, in which to cancel the contract. Consumer protection legislation of this sort was passed by the Iowa House last session, but failed in the Senate. Legislation is being prepared for this session concerning referral sales. Garrett gave three guideline: as possible ways for Iowa consumers to guard against being "conned." The guidelines are: 1. It is impossible for a consumer to know the price of an article sold door-to-door. Iowa consumers should realize they will never get an item costing $350 for $100. 2. Never sign a contract with a door-to-door salesman. At the same time, do not fall for ora promises. 3. Be suspicious of any item given away, ait a reduction, or or an advertising special. Companies do not go" from door-to- door giving away free merchandise. Ninety per cent of all cases coming to Garrett's office involve disregard of these guidelines, he said. "If Iowa consumers would be more wary of offers, suspicious of something-for-nothing deals, and more aware of the existence of these f r a u ds," then fraud cases would Garrett concluded. decrease, See our complete selection of fresh, delicious In Carroll at LOUIE'S NEWS STAND CYO MEETS HALBUR — The main discussion at the Halbur CYO meeting Nov. 12 concerned their Thanksgiving Day mass. The group decided to have the mass at 7 p.m. Thanksgiving Day, Nov. 26, at St. Augustine Church in Halbur. CYO members will participate in the mass. Other discussion was about CYO membership cards and song books. Karen Anstoeter, Carol Sibenal- ler and Tom Buelt spoke on the recent Discovery '70 held at St. Lawrence in Carroll. The Rev. Fr. Victor Kollash • gave a short talk in closing the meeting. X- ' v &-. , *' ' f , M , v "* RAND LOEHR'S JEWELRY on your Na\M verity sevthall pepper mill WITH ADJUSTABLE SHEFFIELD STEEL GRINDERS THURSDAY FRIDAY, SATURDAY November 19, 20, 21 Westgate Mall "When You Know It's For Keeps" REGISTERED the tradition of finest Or refers any tray can carry a glass Or refers, Sweden's foremost producer of world-renowned crystal, presents the first annual limited edition plate: Notre Dame, The Cathedral of Notre Dame is etched in gold and the border is gold. In subsequent years other historical churches will be depicted In a similar manner — every plate a collector's piece, only a Couroc can start a conversation For Those Who Wont to Give Something A Little Extra Special At Christmas Time THE LOFT 714 N. Carroll St, Carroll, Iowa DIAMOND KINS» We extend a special invitation to the Carroll area shoppers to stop in and see our new store, located on Westgate Mall, during our Grand Opening. See all the new and exciting ideas in jewelry, watches, diamonds, silver, clocks. Layaway now for Christmas. Register For FREE PRIZES Ladies Bulova Watch Silver Tray Men's Bulova Watch Cuff Link Sets Pin tr Earring Sets Sterling Silver Pins Necklace & Earring Sets Pierced Earrings Decorator Clock GRAND OPENING SPECIAL Triple Head NORELCO SHAVER i Only Make This Christmas Special with Jewelry Gifts from Loehr's Jewelry OPEN: Thursday & Friday 9 a.m. to 9 p.m. Saturday 9a.m. to 5 p.m. GRAND OPENING SPECIAL Pairs 'N Spares PIERCED EARRINGS 3 interchangeable, pairs of earnings, at one low-price. Only * LOEHR'S JEWELRY 221 Westgate Moll Carroll, Iowa » _*_> •* '. A... 1-...A... 1;. -L.-A^tA--,- Ay A». An . ..W .«V»^

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